How to avoid this happening to you…
Are you interested in purchasing an investment property to assist in funding your retirement but have heard too many tenant horror stories from friends or family?
We’ve also covered tips on on Investing In Property here, but read on for some tips to finding the right tenant for your property…
Selecting the right tenant for your property can make the difference between making a profit and incurring a loss. A good property manager usually has the necessary skills to select a good tenant but how do you go about it on your own if you want to manage your property privately? This is a big challenge as being a successful investor depends significantly on the people tenanting your property so it’s important that you get it right from the get-go.
Where to Advertise
There are numerous online options for advertising your property and also print media such as local newspapers. Be organised and prepared for it to take at least 2 weeks to find a tenant. So, getting your ad in as soon as possible is a smart move. Where you choose to advertise will also depend on the type of tenant (young professional couple / student / family) you are trying to attract.
The copy for your advert should state the facts about the property (bedrooms / bathrooms / living areas/ garages) and then note some property highlights such as alfresco area or landscaped gardens. If tenants want more information about the property they can contact you and request an inspection if desired.
If advertising online, take the time to thoroughly clean the property and perform any necessary maintenance before taking any pictures. Remember like attracts like. Try and envisage that you are the tenant and look at the property through their eyes.
Reviewing Tenancy Applications
You should have tenancy application forms available for all prospective tenants when showing the property to prospective tenants. These need to be completely filled out and if any information is missing, ask the prospective tenant to ring through the details later.
Once you have the completed forms, read over them and clarify any questions you have with the information on the form. Makes sure you see proof of identity from the applicant.
Shortlist your applicants based on the information in the application form and your impression of them from the property inspection. The next step is to start ringing references, TICA, employers, previous landlords or agents to confirm the information contained in the form and to check their previous attitudes towards other properties they may have rented – paying rent on time, notice to vacate, pets, property cleanliness.
Advising the Applicants
Once you have selected the successful applicant, call them to see if they are still interested in tenanting the property. If so, congratulate them and arrange for the bond and advance rent to be paid and paperwork completed.
All other unsuccessful applicants also need to be advised. This just needs to be a polite phone call to notify them that they were unsuccessful and good luck with continuing their search.
It is really important to put as much effort into screening your tenants and doing reference checks as you have in preparing your property and advertising.